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Higher Returns in Fixed-Income Investments Investing in Consumer Notes Renaud Laplanche Founder and CEO Copyright 2009, Lending Club, Inc. What We’ll Cover Today Investing in Consumer Notes How Lending Club Works How You Can Start Investing Your Questions Privileged & Confidential 2 Underserved Market: Prime Consumer Credit The Credit Crunch Creates a Significant Opportunity – Credit cards companies raised rates on all cardholders, including the most creditworthy. Many prime borrowers are getting hit by rates up to 24% – Creates inefficiencies in the marketplace, attractive opportunities for investors and borrowers Privileged & Confidential 3 Lending Club eliminates the high cost and complexity of traditional banks. Higher Returns Lower Rates Creditworthy Borrowers Investors (as Lenders) Privileged & Confidential Lending Club Rates: Better Than a Bank Average Credit Card Rate 16%+ 13.5% Banks Average Our Borrowers Pay Our Revenue & Charge Offs Revenue & Charge Offs 9.75%* Our Investors Annual Returns Banks Pay Depositors 1.75% Privileged & Confidential 5 Only Prime Borrowers Rigorous Standards Approve Less than 1 out of 10 – Average 713 FICO – Average 10% Debt -to-Income – No Current Delinquencies Lending Club Credit Selection $45 Million – No More than 10 Inquiries – Three Years of Credit History – Knowledge-based Authentication – Fraud -risk Scoring $471 Million Issued – Income Verification Declined Privileged & Confidential 6 High Standards Lead to Solid Returns 3% - Annual Charge Off Rate 75% - Late Payment Recovery In addition, Investors receive monthly payments of principal and interest over a 3-year term Trading platform provides liquidity and flexibility after notes are issued Privileged & Confidential 7 New Asset Class with a Strong Track Record Monthly Returns: S&P 500 vs. Lending Club June 2007 to March 2009 Investment Average Monthly Return Lending Club 0.75% Bond Market (BND) 0.52% S&P500 -2.88% Lending Club S&P 500 LC BETA 0.000410 Privileged & Confidential Investing Offers Control and Ease of Use 1 Enter Enter Investment Investment Amount Amount 2 Select Select Risk Risk Sensitivity Sensitivity 3 Review Review & & Confirm Confirm Order Privileged & Confidential You Can Review Details on Each Loan Review each loan’s details Privileged & Confidential Transparency & Security Investors Buy Registered Securities – Registered with the SEC – Prospectus and sales reports available on Lending Club’s Web site Monthly Notes Payments Are Automated – 3-Year Term, Fully Amortized – Automated monthly debit from borrowers’ accounts, credit to investors accounts Efficient Collections – – – – Fewer than average delinquency due to high borrower quality In case of late payments, internal collections team make daily contact Work with multiple collections agencies for 75% recovery Late fees applied to delinquent borrowers Secondary Market offers Liquidity – Investors can sell Notes at any time on the secondary market Privileged & Confidential 11 Lending Club’s Been Making News Privileged & Confidential More About Lending Club > Established in 2006, located in Silicon Valley, California > Over $45 million in loans, with over 180,000 members > Only platform to be registered with the SEC and to feature a secondary market, providing liquidity to investors > Best performing platform in our industry, 9.6% avg. return > Experienced executive leadership Privileged & Confidential 13 Lending Club AAII Special Offer Sign-up at lendingclub.com/aaii - If you invest $5k or more by July 31 (extended to August 30), you receive a 2% bonus into your Lending Club account - Same offer if you sign up for a Lending Club PRIME Investment Account 1-866-811- Investor Hotline 9225 Privileged & Confidential Time for Your Questions Q&A Copyright 2009, Lending Club, Inc. [email protected] www.lendingclub.com/aaii 1-866-8119225 Privileged & Confidential